WeMoney Financial Wellness Survey 2024
New financial wellness survey reveals the crushing impact of Australia’s “vibe-cession”
According to a new survey from financial wellness platform WeMoney, almost 80 percent of Australians have not heard of Consumer Data Right (CDR) or open banking, despite the regime just marking its fifth anniversary on July 1 and its potential to be an important tool in fighting soaring prices.
WeMoney surveyed 1,317 Australians in May & June this year for its 2024 Financial Wellness Report and gauged people’s knowledge of open banking, their attitudes towards changing financial service providers, and their overall financial wellness.
The report found:
55% feel they are overpaying for their financial services/products.
37% haven’t checked if they have the best interest rate for their debt products – including 45% for those who make $100,000 or less.
58% would be more likely to switch financial providers if the switching process was more convenient.
54% have gone into debt just to make ends meet.
When asked how long it took to refinance or consolidate debt, 48% said it took between two weeks and more than two months.
36% think there is little to no competition in the financial services sector and only 42% think it’s very or somewhat competitive.
78% are unaware of Consumer Data Right or open banking.
Dan Jovevski, CEO and Founder of WeMoney, which is one of the country's largest aggregators of open banking data says with the cost of living smashing the finances of average Australians right across the country, it’s time to unlock the potential savings the Consumer Data Right could deliver to all Australians.
“Everyday Aussies have been squeezed between rising prices and flat incomes, hitting hardest those who were already struggling. Increasingly consumers are turning to debt, which is costing them more and putting them farther behind. Technology, especially the Consumer Data Right, can help Aussies live a better financial life by making it easier to compare deals and seamlessly switch financial products, enabling them to pay less and save more,” Mr Jovevski said.
Dan Jovevski says there are several moves the government and regulators can make, to get the rollout of CDR back on track. Including:
The fintech and wider CDR sector needs more clarity from the government on the rollout of CDR. With CDR legislation stalled, and the implementation of CDR for non-bank lending, insurance, telecommunications and superannuation paused, there’s currently a pervasive level of uncertainty which is impacting further research, development and investment.
There’s a need to make it easier and much faster for consumers to connect their accounts via CDR - this will not only increase adoption, but also boost confidence in the system. We need to streamline this process urgently to instil confidence as CDR continues to scale.
A broader open banking awareness campaign is required to educate consumers and drive increased take-up of CDR products.
